[blackcat] L2 Barbara Star Supertrend Indicator

Level 2

Background

Barbara Star’s article on July 2023, “Stay On Track With The Supertrend Indicator”, I rewrote it as pine script for your information.


Function

A supertrend indicator is displayed either above or below the closing price to signal a buy or sell. The indicator changes color depending on whether you should buy or not. When the Supertrend indicator falls below the closing price, the indicator turns green, signaling one or more entry points to buy.

Author Barbara Star describes the Supertrend indicator and how it can be used as a means for traders to stay in sync with the larger trend. She explains how J. Welles Wilder's Average True Range (ATR) forms a basis for supertrend calculations. ATR does not measure price direction, but rather provides a measure of volatility over a period of time. The Supertrend indicator, on the other hand, provides a more comprehensive view of trend direction. In addition, the indicator provides price levels at which a trend reversal would occur.

Green color stands for up trend;
Red color stands for down trend.


Remarks

Feedbacks are appreciated.